Mass home sales drop, but prices stabilize

With interest rates and home prices at historic lows, sellers should come to terms with - and buyers should jump into - the current housing market, say real estate experts.

Lindsey Parietti

With interest rates and home prices at historic lows, sellers should come to terms with - and buyers should jump into - the current housing market, say real estate experts.

In Massachusetts, median single family home prices have been declining since July and have hovered around $310,000 for the past three months, according to a Massachusetts Association of Realtors report.

But buyers may not be fully taking advantage of the housing slump yet - 2,803 single family home sales closed in April, the fewest for that month since 1995.

Although sales decreased 12 percent from April 2007- the biggest year-to-year drop in two decades, according to the group - Warren said an uptick in sales from March to April indicates things are moving again after months of what he called a housing log jam.

“It could be that the combination of the lower prices that people seem to be accepting these days, sellers and buyers are coming together at lower price points,” he said.

Compared to March, sales rose nearly 20 percent for single family homes and about 18 percent for condominiums last month in Massachusetts, several percentage points higher than the national increases.

But the spike could also reflect the season; spring through late summer is typically the most active time for real estate sales, which usually peak in June, according to data from the Massachusetts Association of Realtors.

Although she said the buyer’s market is nearly a decade in the making and not likely to reverse in the immediate future, Karen LaChance of ERA Key Realty Services in Framingham, advises prospective homeowners not to hold out hope for a better deal when they find their dream house.

“It’s difficult to predict how long this buyer’s market will continue,” she said. “If buyers are ready to buy, now is a really good time to do it.”

“On the negative side, buyers’ confidence is still low because of the economy - gasoline and food prices are rising, foreclosures are continuing - but I think that if they’re wise and they’ve been looking for a while, they really should jump into the market.”

Counties across the state have felt the same sales and pricing trends, but LaChance said supply and demand seems to be balancing out better in MetroWest, where “pending agreement” signs are visible everywhere.

“We’re seeing some stability now, prices are not crashing, and sellers are realizing … you’ve got to let go of the prices your neighbors got 2½ years ago,” she said. “Especially if you’re buying another property, you’re going to make up for (getting less than you wanted on) the sale.”

It’s not all bad news for homeowners either.

LaChance said stricter mortgage requirements give sellers more confidence in buyers who are pre-approved by established credit agencies.

Rebounding condominium sales and values, which increased 21 percent and 2 percent, respectively in the Greater Boston area last month, are also a good sign, she said.